Governor Announces Loans To Cover Losses From Storm

Homeowners and renters can apply for the loans to repair or replace items damaged by Ernesto.

People who sustained property damage during Tropical Depression Ernesto soon can apply for low-interest loans from the U.S. Small Business Administration, Gov. Timothy M. Kaine announced Monday.

Last week, Kaine asked the administration to make the loans available to people in the areas hardest hit by the Aug. 29 storm, which killed seven people and caused an estimated $118 million in damage.

The loans are available to homeowners and renters in Hampton, Newport News and Richmond and in Gloucester and Northumberland counties. People in adjacent areas are also automatically eligible to apply for the two types of loans offered, according to Kaine's office. The areas include Poquoson and the counties of Essex, James City, King and Queen, Lancaster, Mathews, Middlesex, Westmoreland and York.

Homeowners are eligible for real property loans of up to $200,000 to repair or restore a primary home to its pre-disaster condition. Personal property loans also can provide homeowners or renters with up to $40,000 to help repair or replace personal property, such as clothing, furniture and automobiles.

Businesses also can apply for the loans to help repair or replace damaged property or cover loss of business.

Interest rates for homeowners and renters range from 3.125 to 6.250 percent, depending on credit availability. Rates for businesses and nonprofit organizations range from 4 to 7.934 percent. Application details will be announced soon. *